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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||||
4 | Section 5. The Illinois Finance Authority Act is amended by | ||||||||||||||||||||||||||||||
5 | changing Sections 830-30, 830-35, 830-45, and 830-50 as | ||||||||||||||||||||||||||||||
6 | follows:
| ||||||||||||||||||||||||||||||
7 | (20 ILCS 3501/830-30)
| ||||||||||||||||||||||||||||||
8 | Sec. 830-30. State Guarantees for existing debt.
| ||||||||||||||||||||||||||||||
9 | (a) The Authority is authorized to issue State Guarantees | ||||||||||||||||||||||||||||||
10 | for farmers'
existing
debts held by a lender. For the purposes | ||||||||||||||||||||||||||||||
11 | of this
Section, a farmer shall be a
resident of Illinois, who | ||||||||||||||||||||||||||||||
12 | is a principal operator of a farm or land, at least
30%
50% of | ||||||||||||||||||||||||||||||
13 | whose annual gross income is derived from farming and whose | ||||||||||||||||||||||||||||||
14 | debt to
asset
ratio shall not exceed the maximum established by | ||||||||||||||||||||||||||||||
15 | the Authority
be less than 40% , except in those cases where the | ||||||||||||||||||||||||||||||
16 | applicant has
previously used the guarantee program there shall | ||||||||||||||||||||||||||||||
17 | be no debt to asset ratio or
income restriction. For the | ||||||||||||||||||||||||||||||
18 | purposes of this
Section, debt to asset ratio shall
mean the | ||||||||||||||||||||||||||||||
19 | current outstanding liabilities of the farmer divided by the | ||||||||||||||||||||||||||||||
20 | current
outstanding assets of the farmer. The Authority shall | ||||||||||||||||||||||||||||||
21 | establish the maximum
permissible debt to asset ratio based on | ||||||||||||||||||||||||||||||
22 | criteria established by the Authority. | ||||||||||||||||||||||||||||||
23 |
Lenders shall apply for the State Guarantees on forms | ||||||||||||||||||||||||||||||
24 | provided by the Authority
and certify that the application and | ||||||||||||||||||||||||||||||
25 | any other documents submitted are true and
correct. The lender | ||||||||||||||||||||||||||||||
26 | or borrower, or both in combination, shall pay an
| ||||||||||||||||||||||||||||||
27 | administrative fee as determined by the Authority. The | ||||||||||||||||||||||||||||||
28 | applicant shall be
responsible for paying any fees or charges | ||||||||||||||||||||||||||||||
29 | involved in recording mortgages,
releases, financing | ||||||||||||||||||||||||||||||
30 | statements, insurance for secondary market issues and any
other | ||||||||||||||||||||||||||||||
31 | similar fees or charges as the Authority may require. The | ||||||||||||||||||||||||||||||
32 | application
shall at a minimum contain the farmer's name, |
| |||||||
| |||||||
1 | address, present credit and
financial information, including | ||||||
2 | cash flow statements, financial statements,
balance sheets, | ||||||
3 | and any other information pertinent to the application, and the
| ||||||
4 | collateral to be used to secure the State Guarantee. In | ||||||
5 | addition, the lender
must agree to bring the farmer's debt to a | ||||||
6 | current status at the time the State
Guarantee is provided and | ||||||
7 | must also agree to charge a fixed or adjustable
interest rate | ||||||
8 | which the Authority determines to be below the market rate of
| ||||||
9 | interest generally available to the borrower. If both the | ||||||
10 | lender and applicant
agree, the interest rate on the State | ||||||
11 | Guarantee Loan can be converted to a fixed
interest rate at any | ||||||
12 | time during the term of the loan.
| ||||||
13 | Any State Guarantees provided under this
Section (i) shall | ||||||
14 | not exceed $750,000
$500,000
per farmer, (ii) shall be set up | ||||||
15 | on a payment schedule not to exceed 30 years,
and shall be no | ||||||
16 | longer than 30 years in duration, and (iii) shall be subject to
| ||||||
17 | an annual review and renewal by the lender and the Authority; | ||||||
18 | provided that
only
one such State Guarantee shall be | ||||||
19 | outstanding per farmer at any one time. No
State Guarantee | ||||||
20 | shall be revoked by the Authority without a 90-day notice, in
| ||||||
21 | writing, to all parties. In those cases where the borrower has | ||||||
22 | not previously
used the guarantee program, the lender shall not | ||||||
23 | call due any loan during the
first 3 years for any reason | ||||||
24 | except for lack of performance or insufficient
collateral. The | ||||||
25 | lender can review and withdraw or continue with the State
| ||||||
26 | Guarantee on an annual basis after the first 3 years of the | ||||||
27 | loan , provided a
90-day notice, in writing, to all parties has | ||||||
28 | been given.
| ||||||
29 | (b) The Authority shall provide or renew a State Guarantee | ||||||
30 | to a lender if:
| ||||||
31 | (i) A fee equal to 25 basis points on the loan is paid | ||||||
32 | to the Authority on
an
annual
basis by the lender.
| ||||||
33 | (ii) The application provides collateral acceptable to | ||||||
34 | the
Authority that is at least equal to the gross loan | ||||||
35 | amount
State's portion of the Guarantee to be
provided .
| ||||||
36 | (iii) The lender assumes all responsibility and costs |
| |||||||
| |||||||
1 | for pursuing
legal action on collecting any loan that is | ||||||
2 | delinquent or in default.
| ||||||
3 | (iv) The
lender is responsible for the first 15% of the | ||||||
4 | outstanding principal of the
note
for which the State | ||||||
5 | Guarantee has been applied.
| ||||||
6 | (c) There is hereby created outside of the State treasury a | ||||||
7 | special fund to
be
known as the Illinois Agricultural Loan | ||||||
8 | Guarantee Fund. The State Treasurer
shall be custodian of this | ||||||
9 | Fund. Any amounts in the Illinois Agricultural Loan
Guarantee | ||||||
10 | Fund not currently needed to meet the obligations of the Fund | ||||||
11 | shall
be
invested as provided by law, and all interest earned | ||||||
12 | from these investments
shall be deposited into the Fund until | ||||||
13 | the Fund reaches the maximum amount
authorized in this Act; | ||||||
14 | thereafter, interest earned shall be deposited into the
General | ||||||
15 | Revenue Fund. After September 1, 1989, annual investment | ||||||
16 | earnings equal
to 1.5% of the Fund shall remain in the Fund to | ||||||
17 | be used for the purposes
established in
Section 830-40 of this | ||||||
18 | Act. | ||||||
19 | The Authority is authorized to
transfer to the Fund such | ||||||
20 | amounts as are necessary to satisfy claims during the
duration | ||||||
21 | of the State Guarantee program to secure State Guarantees | ||||||
22 | issued under
this
Section. If for any reason the General | ||||||
23 | Assembly fails to make an
appropriation sufficient to meet | ||||||
24 | these obligations, this Act shall constitute
an
irrevocable and | ||||||
25 | continuing appropriation of an amount necessary to secure
| ||||||
26 | guarantees as defaults occur and the irrevocable and continuing | ||||||
27 | authority for,
and direction to, the State Treasurer and the | ||||||
28 | Comptroller to make the necessary
transfers to the Illinois | ||||||
29 | Agricultural Loan Guarantee Fund, as directed by the
Governor, | ||||||
30 | out of the General Revenue Fund. | ||||||
31 | Within 30 days after November 15,
1985, the Authority may | ||||||
32 | transfer up to $7,000,000 from available appropriations
into | ||||||
33 | the Illinois Agricultural Loan Guarantee Fund for the purposes | ||||||
34 | of this
Act.
Thereafter, the Authority may transfer additional | ||||||
35 | amounts into the Illinois
Agricultural Loan Guarantee Fund to | ||||||
36 | secure guarantees for defaults as defaults
occur. |
| |||||||
| |||||||
1 | In the event of default by the farmer, the lender shall be | ||||||
2 | entitled to,
and the Authority shall direct payment on, the | ||||||
3 | State Guarantee after 90 days of
delinquency. All payments by | ||||||
4 | the Authority shall be made from the Illinois
Agricultural Loan | ||||||
5 | Guarantee Fund to satisfy claims against the State Guarantee.
| ||||||
6 | The Illinois Agricultural Loan Guarantee Fund shall guarantee | ||||||
7 | receipt of payment
of the 85% of the principal and interest | ||||||
8 | owed on the State Guarantee Loan by the
farmer to the guarantee | ||||||
9 | holder. | ||||||
10 | It shall be the responsibility of the lender to
proceed | ||||||
11 | with the collecting and disposing of collateral on the State | ||||||
12 | Guarantee
within 14 months of the time the State Guarantee is | ||||||
13 | declared delinquent;
provided, however, that the lender shall | ||||||
14 | not collect or dispose of collateral on
the State Guarantee | ||||||
15 | without the express written prior approval of the Authority.
If | ||||||
16 | the lender does not dispose of the collateral within 14 months, | ||||||
17 | the lender
shall be liable to repay to the State interest on | ||||||
18 | the State Guarantee equal to
the same rate which the lender | ||||||
19 | charges on the State Guarantee; provided,
however, that the | ||||||
20 | Authority may extend the 14-month period for a lender in the
| ||||||
21 | case of bankruptcy or extenuating circumstances. The Fund shall | ||||||
22 | be reimbursed
for any amounts paid under this
Section upon | ||||||
23 | liquidation of the collateral. The
Authority, by resolution of | ||||||
24 | the Board, may borrow sums from the Fund and
provide
for | ||||||
25 | repayment as soon as may be practical upon receipt of payments | ||||||
26 | of principal
and interest by a farmer. Money may be borrowed | ||||||
27 | from the Fund by the Authority
for the sole purpose of paying | ||||||
28 | certain interest costs for farmers associated
with selling a | ||||||
29 | loan subject to a State Guarantee in a secondary market as may
| ||||||
30 | be
deemed reasonable and necessary by the Authority.
| ||||||
31 | (d) Notwithstanding the provisions of this
Section 830-30 | ||||||
32 | with respect to the
farmers and lenders who may obtain State | ||||||
33 | Guarantees, the Authority may
promulgate rules establishing | ||||||
34 | the eligibility of farmers and lenders to
participate in the | ||||||
35 | State guarantee program and the terms, standards, and
| ||||||
36 | procedures that will apply, when the Authority finds that |
| |||||||
| |||||||
1 | emergency conditions
in Illinois agriculture have created the | ||||||
2 | need for State Guarantees pursuant to
terms, standards, and | ||||||
3 | procedures other than those specified in this
Section.
| ||||||
4 | (Source: P.A. 93-205, eff. 1-1-04.)
| ||||||
5 | (20 ILCS 3501/830-35)
| ||||||
6 | Sec. 830-35. State Guarantees for loans to farmers and | ||||||
7 | agribusiness;
eligibility. | ||||||
8 | (a) The Authority is authorized to issue State Guarantees | ||||||
9 | to lenders for
loans
to eligible farmers and agribusinesses for | ||||||
10 | purposes set forth in this
Section.
For purposes of this
| ||||||
11 | Section, an eligible farmer shall be a resident of Illinois
(i) | ||||||
12 | who is principal operator of a farm or land, at least 30%
50%
| ||||||
13 | of whose annual
gross income is derived from farming, and (ii) | ||||||
14 | whose annual total sales of
agricultural products, | ||||||
15 | commodities, or livestock exceeds $20,000 , and (iii)
whose net | ||||||
16 | worth does not exceed $500,000 . An eligible agribusiness shall | ||||||
17 | be
that as defined in
Section 801-10 of this Act.
| ||||||
18 | The Authority may approve applications by farmers and | ||||||
19 | agribusinesses that
promote diversification of the farm | ||||||
20 | economy of this State through the growth
and
development of new | ||||||
21 | crops or livestock not customarily grown or produced in this
| ||||||
22 | State or that emphasize a vertical integration of grain or | ||||||
23 | livestock produced
or
raised in this State into a finished | ||||||
24 | agricultural product for consumption or
use. "New crops or | ||||||
25 | livestock not customarily grown or produced in this State"
| ||||||
26 | shall not include corn, soybeans, wheat, swine, or beef or | ||||||
27 | dairy cattle.
"Vertical integration of grain or livestock | ||||||
28 | produced or raised in this State"
shall include any new or | ||||||
29 | existing grain or livestock grown or produced in this
State.
| ||||||
30 | Lenders shall apply for the State Guarantees on forms | ||||||
31 | provided by the
Authority,
certify that the application and any | ||||||
32 | other documents submitted are true and
correct, and pay an | ||||||
33 | administrative fee as determined by the Authority. The
| ||||||
34 | applicant shall be responsible for paying any fees or charges | ||||||
35 | involved in
recording mortgages, releases, financing |
| |||||||
| |||||||
1 | statements, insurance for secondary
market issues and any other | ||||||
2 | similar fees or charges as the Authority may
require. The | ||||||
3 | application shall at a minimum contain the farmer's or
| ||||||
4 | agribusiness' name, address, present credit and financial | ||||||
5 | information,
including cash flow statements, financial | ||||||
6 | statements, balance sheets, and any
other
information | ||||||
7 | pertinent to the application, and the collateral to be used to
| ||||||
8 | secure the State Guarantee. In addition, the lender must agree | ||||||
9 | to charge an
interest rate, which may vary, on the loan that | ||||||
10 | the Authority determines to be
below the market rate of | ||||||
11 | interest generally available to the borrower. If both
the | ||||||
12 | lender and applicant agree, the interest rate on the State | ||||||
13 | Guarantee Loan
can be converted to a fixed interest rate at any | ||||||
14 | time during the term of the
loan.
| ||||||
15 | Any State Guarantees provided under this
Section (i) shall | ||||||
16 | not exceed $500,000
per farmer or an amount as determined by | ||||||
17 | the Authority on a case-by-case
basis for an agribusiness , (ii) | ||||||
18 | shall not exceed a term of 30
15 years, and (iii)
shall be | ||||||
19 | subject to an annual review and renewal by the lender and the
| ||||||
20 | Authority; provided that only one such State Guarantee shall be | ||||||
21 | made per farmer
or agribusiness, except that additional State | ||||||
22 | Guarantees may be made for
purposes of expansion of projects | ||||||
23 | financed in part by a previously issued State
Guarantee. No | ||||||
24 | State Guarantee shall be revoked by the Authority without a
| ||||||
25 | 90-day notice, in writing, to all parties. The lender shall not | ||||||
26 | call due any
loan
for any reason except for lack of | ||||||
27 | performance, insufficient collateral, or
maturity. A lender | ||||||
28 | may review and withdraw or continue with a State Guarantee
on | ||||||
29 | an annual basis after the first 5 years following closing of | ||||||
30 | the loan
application if the loan contract provides for an | ||||||
31 | interest rate that shall not
vary. A lender shall not withdraw | ||||||
32 | a State Guarantee if the loan contract
provides for an interest | ||||||
33 | rate that may vary, except for reasons set forth
herein .
| ||||||
34 | (b) The Authority shall provide or renew a State Guarantee | ||||||
35 | to a lender if:
| ||||||
36 | (i) A fee equal to 25 basis points on the loan is paid |
| |||||||
| |||||||
1 | to the Authority on
an annual
basis by the lender.
| ||||||
2 | (ii) The application provides collateral acceptable to | ||||||
3 | the
Authority that is at least equal to the gross loan | ||||||
4 | amount
State's portion of the Guarantee to be
provided .
| ||||||
5 | (iii) The lender assumes all responsibility and costs | ||||||
6 | for pursuing
legal action on collecting any loan that is | ||||||
7 | delinquent or in default.
| ||||||
8 | (iv) The
lender is responsible for the first 15% of the | ||||||
9 | outstanding principal of the
note
for which the State | ||||||
10 | Guarantee has been applied.
| ||||||
11 | (c) There is hereby created outside of the State treasury a | ||||||
12 | special fund to
be
known as the Illinois Farmer and | ||||||
13 | Agribusiness Loan Guarantee Fund. The State
Treasurer shall be | ||||||
14 | custodian of this Fund. Any amounts in the Fund not
currently | ||||||
15 | needed to meet the obligations of the Fund shall be invested as
| ||||||
16 | provided by law, and all interest earned from these investments | ||||||
17 | shall be
deposited into the Fund until the Fund reaches the | ||||||
18 | maximum amounts authorized
in
this Act; thereafter, interest | ||||||
19 | earned shall be deposited into the General
Revenue Fund. After | ||||||
20 | September 1, 1989, annual investment earnings equal to 1.5%
of | ||||||
21 | the Fund shall remain in the Fund to be used for the purposes | ||||||
22 | established in
Section 830-40 of this Act. | ||||||
23 | The Authority is authorized to transfer such
amounts
as are | ||||||
24 | necessary to satisfy claims from available appropriations and | ||||||
25 | from fund
balances of the Farm Emergency Assistance Fund as of | ||||||
26 | June 30 of each year to
the
Illinois Farmer and Agribusiness | ||||||
27 | Loan Guarantee Fund to secure State Guarantees
issued under | ||||||
28 | this
Section and
Sections 830-45 and 830-50. If for any reason | ||||||
29 | the
General Assembly fails to make an appropriation sufficient | ||||||
30 | to meet these
obligations, this Act shall constitute an | ||||||
31 | irrevocable and continuing
appropriation of an amount | ||||||
32 | necessary to secure guarantees as defaults occur and
the | ||||||
33 | irrevocable and continuing authority for, and direction to, the | ||||||
34 | State
Treasurer and the Comptroller to make the necessary | ||||||
35 | transfers to the Illinois
Farmer and Agribusiness Loan | ||||||
36 | Guarantee Fund, as directed by the Governor, out
of
the General |
| |||||||
| |||||||
1 | Revenue Fund. | ||||||
2 | In the event of default by the borrower on State
Guarantee | ||||||
3 | Loans under this
Section,
Section 830-45 or
Section 830-50, the | ||||||
4 | lender
shall be entitled to, and the Authority shall direct | ||||||
5 | payment on, the State
Guarantee after 90 days of delinquency. | ||||||
6 | All payments by the Authority shall be
made from the Illinois | ||||||
7 | Farmer and Agribusiness Loan Guarantee Fund to satisfy
claims | ||||||
8 | against the State Guarantee. | ||||||
9 | It shall be the responsibility of the
lender to proceed | ||||||
10 | with the collecting and disposing of collateral on the State
| ||||||
11 | Guarantee under this
Section,
Section 830-45 or
Section 830-50 | ||||||
12 | within 14 months of
the time the State Guarantee is declared | ||||||
13 | delinquent. If the lender does not
dispose of the collateral | ||||||
14 | within 14 months, the lender shall be liable to repay
to the | ||||||
15 | State interest on the State Guarantee equal to the same rate | ||||||
16 | that the
lender charges on the State Guarantee, provided that | ||||||
17 | the Authority shall have
the authority to extend the 14-month | ||||||
18 | period for a lender in the case of
bankruptcy or extenuating | ||||||
19 | circumstances. The Fund shall be reimbursed for any
amounts | ||||||
20 | paid under this
Section,
Section 830-45 or
Section 830-50 upon | ||||||
21 | liquidation
of the collateral.
| ||||||
22 | The Authority, by resolution of the Board, may borrow sums | ||||||
23 | from the Fund and
provide for repayment as soon as may be | ||||||
24 | practical upon receipt of payments of
principal and interest by | ||||||
25 | a borrower on State Guarantee Loans under this
Section,
Section | ||||||
26 | 830-45 or
Section 830-50. Money may be borrowed from the Fund | ||||||
27 | by
the Authority for the sole purpose of paying certain | ||||||
28 | interest costs for
borrowers associated with selling a loan | ||||||
29 | subject to a State Guarantee under
this
Section,
Section 830-45 | ||||||
30 | or
Section 830-50 in a secondary market as may be deemed
| ||||||
31 | reasonable and necessary by the Authority.
| ||||||
32 | (d) Notwithstanding the provisions of this
Section 830-35 | ||||||
33 | with respect to the
farmers, agribusinesses, and lenders who | ||||||
34 | may obtain State Guarantees, the
Authority may promulgate rules | ||||||
35 | establishing the eligibility of farmers,
agribusinesses, and | ||||||
36 | lenders to participate in the State Guarantee program and
the |
| |||||||
| |||||||
1 | terms, standards, and procedures that will apply, when the | ||||||
2 | Authority finds
that emergency conditions in Illinois | ||||||
3 | agriculture have created the need for
State Guarantees pursuant | ||||||
4 | to terms, standards, and procedures other than those
specified | ||||||
5 | in this
Section.
| ||||||
6 | (Source: P.A. 93-205, eff. 1-1-04.)
| ||||||
7 | (20 ILCS 3501/830-45)
| ||||||
8 | Sec. 830-45. Illinois
Young Farmer Loan Guarantee Program.
| ||||||
9 | (a) The Authority is authorized to issue State Guarantees | ||||||
10 | to lenders for
loans
to finance or refinance debts of young
| ||||||
11 | farmers. For the purposes of this
Section, a young farmer is a | ||||||
12 | resident of Illinois who is at least 18 years of
age and who is | ||||||
13 | a principal operator of a farm or land, who derives at least | ||||||
14 | 30%
50%
of annual gross income from farming, whose net worth is | ||||||
15 | not less than $10,000
and whose debt to asset ratio does not | ||||||
16 | exceed the maximum limit established by the Authority
is not | ||||||
17 | less than 40% . For the purposes of this
Section, debt to asset | ||||||
18 | ratio means current outstanding liabilities, including
any | ||||||
19 | debt to be financed or refinanced under this
Section 830-45, | ||||||
20 | divided by
current outstanding assets. The Authority shall | ||||||
21 | establish the maximum
permissible debt to asset ratio based on | ||||||
22 | criteria established by the Authority.
| ||||||
23 | Lenders shall apply for the State Guarantees on forms | ||||||
24 | provided by the Authority
and certify that the application and | ||||||
25 | any other documents submitted are true and
correct. The lender | ||||||
26 | or borrower, or both in combination, shall pay an
| ||||||
27 | administrative fee as determined by the Authority. The | ||||||
28 | applicant shall be
responsible for paying any fee or charge | ||||||
29 | involved in recording mortgages,
releases, financing | ||||||
30 | statements, insurance for secondary market issues, and any
| ||||||
31 | other similar fee or charge that the Authority may require. The | ||||||
32 | application
shall at a minimum contain the young farmer's name, | ||||||
33 | address, present credit and
financial information, including | ||||||
34 | cash flow statements, financial statements,
balance sheets, | ||||||
35 | and any other information pertinent to the application, and the
|
| |||||||
| |||||||
1 | collateral to be used to secure the State Guarantee. In | ||||||
2 | addition, the borrower
must certify to the Authority that, at | ||||||
3 | the time the State Guarantee is
provided,
the borrower will not | ||||||
4 | be delinquent in the repayment of any debt. The lender
must | ||||||
5 | agree to charge a fixed or adjustable interest rate that the | ||||||
6 | Authority
determines to be below the market rate of interest | ||||||
7 | generally available to the
borrower. If both the lender and | ||||||
8 | applicant agree, the interest rate on the
State guaranteed loan | ||||||
9 | can be converted to a fixed interest rate at any time
during | ||||||
10 | the term of the loan.
| ||||||
11 | State Guarantees provided under this
Section (i) shall not | ||||||
12 | exceed $750,000
$500,000 per
young farmer, (ii) shall be set up | ||||||
13 | on a payment schedule not to exceed 30
years,
but shall be no | ||||||
14 | longer than 30
15 years in duration, and (iii) shall be subject | ||||||
15 | to
an annual review and renewal by the lender and the | ||||||
16 | Authority. A young farmer
may
use this program more than once | ||||||
17 | provided the aggregate principal amount of
State
Guarantees | ||||||
18 | under this
Section to that young farmer does not exceed | ||||||
19 | $500,000 . No
State Guarantee shall be revoked by the Authority | ||||||
20 | without a 90-day notice, in
writing, to all parties.
| ||||||
21 | (b) The Authority shall provide or renew a State Guarantee | ||||||
22 | to a lender if:
| ||||||
23 | (i) The lender pays a fee equal to 25 basis points on | ||||||
24 | the loan to the
Authority on
an annual basis.
| ||||||
25 | (ii) The application provides collateral acceptable to | ||||||
26 | the
Authority that is at least equal to the gross loan | ||||||
27 | amount
State Guarantee .
| ||||||
28 | (iii) The lender
assumes all responsibility and costs | ||||||
29 | for pursuing legal action on collecting
any
loan that is | ||||||
30 | delinquent or in default.
| ||||||
31 | (iv) The lender is at risk for the
first 15% of the | ||||||
32 | outstanding principal of the note for which the State
| ||||||
33 | Guarantee
is provided.
| ||||||
34 | (c) The Illinois Farmer and Agribusiness Loan Guarantee | ||||||
35 | Fund may be used to
secure State Guarantees issued under this
| ||||||
36 | Section as provided in
Section 830-35.
|
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| |||||||
1 | (d) Notwithstanding the provisions of this
Section 830-45 | ||||||
2 | with respect to the
young farmers and lenders who may obtain | ||||||
3 | State Guarantees, the Authority may
promulgate rules | ||||||
4 | establishing the eligibility of young farmers and lenders to
| ||||||
5 | participate in the State Guarantee program and the terms, | ||||||
6 | standards, and
procedures that will apply, when the Authority | ||||||
7 | finds that emergency conditions
in Illinois agriculture have | ||||||
8 | created the need for State Guarantees pursuant to
terms, | ||||||
9 | standards, and procedures other than those specified in this
| ||||||
10 | Section.
| ||||||
11 | (Source: P.A. 93-205, eff. 1-1-04.)
| ||||||
12 | (20 ILCS 3501/830-50)
| ||||||
13 | Sec. 830-50. Specialized Livestock Guarantee Program.
| ||||||
14 | (a) The Authority is authorized to issue State Guarantees | ||||||
15 | to lenders for
loans
to finance or refinance debts for | ||||||
16 | specialized livestock operations that are or
will be located in | ||||||
17 | Illinois. For purposes of this
Section, a "specialized
| ||||||
18 | livestock operation" includes, but is not limited to, dairy, | ||||||
19 | beef, and swine
enterprises.
| ||||||
20 | (b) Lenders shall apply for the State Guarantees on forms | ||||||
21 | provided by the
Authority and certify that the application and | ||||||
22 | any other documents submitted
are true and correct. The lender | ||||||
23 | or borrower, or both in combination, shall pay
an | ||||||
24 | administrative fee as determined by the Authority. The | ||||||
25 | applicant shall be
responsible for paying any fee or charge | ||||||
26 | involved in recording mortgages,
releases, financing | ||||||
27 | statements, insurance for secondary market issues, and any
| ||||||
28 | other similar fee or charge that the Authority may require. The | ||||||
29 | application
shall, at a minimum, contain the farmer's name, | ||||||
30 | address, present credit and
financial information, including | ||||||
31 | cash flow statements, financial statements,
balance sheets, | ||||||
32 | and any other information pertinent to the application, and the
| ||||||
33 | collateral to be used to secure the State Guarantee. In | ||||||
34 | addition, the borrower
must certify to the Authority that, at | ||||||
35 | the time the State Guarantee is
provided,
the borrower will not |
| |||||||
| |||||||
1 | be delinquent in the repayment of any debt. The lender
must | ||||||
2 | agree to charge a fixed or adjustable interest rate that the | ||||||
3 | Authority
determines to be below the market rate of interest | ||||||
4 | generally available to the
borrower. If both the lender and | ||||||
5 | applicant agree, the interest rate on the
State guaranteed loan | ||||||
6 | can be converted to a fixed interest rate at any time
during | ||||||
7 | the term of the loan.
| ||||||
8 | (c) State Guarantees provided under this
Section (i) shall | ||||||
9 | not exceed
$1,000,000 per applicant, (ii) shall be no longer | ||||||
10 | than 30
15 years in duration,
and
(iii) shall be subject to an | ||||||
11 | annual review and renewal by the lender and the
Authority. An | ||||||
12 | applicant may use this program more than once , provided that | ||||||
13 | the
aggregate principal amount of State Guarantees under this
| ||||||
14 | Section to that
applicant does not exceed $1,000,000 . A State | ||||||
15 | Guarantee shall not be revoked by
the Authority without a | ||||||
16 | 90-day notice, in writing, to all parties.
| ||||||
17 | (d) The Authority shall provide or renew a State Guarantee | ||||||
18 | to a lender if:
| ||||||
19 | (i) The lender pays a fee equal to 25 basis points on | ||||||
20 | the loan to the Authority
on
an annual basis. | ||||||
21 | (ii) The application provides collateral acceptable to | ||||||
22 | the
Authority that is at least equal to the gross loan | ||||||
23 | amount
State Guarantee . | ||||||
24 | (iii) The lender
assumes all responsibility and costs | ||||||
25 | for pursuing legal action on collecting
any
loan that is | ||||||
26 | delinquent or in default. | ||||||
27 | (iv) The lender is at risk for the first
15% of the | ||||||
28 | outstanding principal of the note for which the State | ||||||
29 | Guarantee is
provided.
| ||||||
30 | (e) The Illinois Farmer and Agribusiness Loan Guarantee | ||||||
31 | Fund may be used to
secure State Guarantees issued under this
| ||||||
32 | Section as provided in
Section 830-35.
| ||||||
33 | (f) Notwithstanding the provisions of this
Section 830-50 | ||||||
34 | with respect to the
specialized livestock operations and | ||||||
35 | lenders who may obtain State Guarantees,
the Authority may | ||||||
36 | promulgate rules establishing the eligibility of specialized
|
| |||||||
| |||||||
1 | livestock operations and lenders to participate in the State | ||||||
2 | Guarantee program
and the terms, standards, and procedures that | ||||||
3 | will apply, when the Authority
finds that emergency conditions | ||||||
4 | in Illinois agriculture have created the need
for State | ||||||
5 | Guarantees pursuant to terms, standards, and procedures other | ||||||
6 | than
those specified in this Section.
| ||||||
7 | (Source: P.A. 93-205, eff. 1-1-04.)
| ||||||
8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
|